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T. Rowe Price Beats Analysts’ Expectations

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Mar. 9 2018, Updated 12:10 p.m. ET

Beats earnings projections

T. Rowe Price (TROW) posted EPS (earnings per share) of $1.52 in 4Q17, beating analysts’ expectation of $1.46. According to the company, its AUM (assets under management) were boosted in 4Q17 and 2017 by client activities, strong markets, and investment performance.

T. Rowe Price plans to maintain its focus on strategic priorities. The company has added to the priorities and clients have responded positively.

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Revenue estimates exceeded

T. Rowe Price generated revenue of $1.3 billion in 4Q17, beating analysts’ estimate by $20 million. On December 31, 2017, the company’s total AUM stood at $991.1 billion.

In 4Q17, T. Rowe Price witnessed net cash inflow of $3.7 billion after client transfers. The company’s US mutual funds saw net cash outflow of $2.2 billion, while other investment products witnessed net cash inflow of $5.9 billion after client transfers.

Whereas T. Rowe Price has a last-12-month dividend yield of 2%, peers (XLF) BlackRock (BLK), Franklin Resources (BEN), and Financial Engines (FNGN) have yields of 1.8%, 2.0%, and 0.81%, respectively. In this series, we’ll look at T. Rowe Price’s outlook on emerging and global markets, 4Q17 numbers, AUM, valuation, analyst ratings, and future strategies.

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